foundation of common interest in the second decades of the 21st century. [speaking in chinese] >> translator: why do i raise this point? because since the second half of 2008, with the international financial crisis and the growth of the china economic stress there have emerged anxieties in the international public opinion about the direction of china's development and skepticism and speculation about china's intentions to stick to the path of peaceful development. ..

misinterpretation of the direction of china's development. and also do great harm to the interests of the united states as well as the common interest of china and the united states. i believe none of us would like to see it happening. for relief, we have heard recently reassuring and reasoned voices and the wise advice from some american strategists.

it shows that we have agreement on the existence of time and interest and entered dependence between our two countries. when i studied the subject as an observer and a scholar, i tried to explain why china's rise is to be peaceful. in the early years of this century, i pointed out on several occasions that it was economic globalization that it made china's rice peaceful, which in turn was keep off in the world opportunities and market the mutual benefit that we will progress. since 2004, i further propose that china needs gradually to build communities of interest

with our neighbors and surrounding regions, especially with the united states. as i said, in june 2005, in my addresses to the national committee on u.s.-china relations in the parking petition, there are factors which one make it possible for our two countries to form communities of interest in multiple areas and that different levels in such communities will not be easily broken a. the fact, as i mentioned, are as follows. in an era of globalization, our interest there's so deeply

intertwined that we need each other. the rest of nontraditional security threats has left to a new security concept based on cooperation among major countries. the national community has come to understand that there is necessity for joint efforts to address personal hot button issues and maintain national peace and security, increasing contacts between the chinese and the american people close together. and i still believe this is true and i believe that the development has proven this fact. for example, we have seen further developments of chinese american student studying each other's countries. i would like to take this

of interest in the next decade. first, i look for china's development and second decade of the 21st century. on the subject of fostering convergence of interest and communities of interest, i must first be briefly about the idea and call of china's development in the second decade of the 21st century. the first two decades of the 21st century are a crucial period in china's endeavor to be a moderately prosperous society in more people. it is a period of development, focusing on improving the life

of the people and raising the quality of life in a sustainable manner. it is also a period of transformation of china's economy. now half of this relatively independent empirical. and we still have 10 years ahead of us. on the whole, in the past 10 years, we have done quite well in quantitative terms, but not in it so satisfactorily and quality of terms. nowhere in the second decade. what kind of alternatives we face in the development. i like to provide you a list. for example, resources and the environment can trains our economic growth and social

development, including imbalance between consumption and the city and the rural areas in the eastern and western regions. difficult industrial restructuring and insufficient r&d human resources are unable to meet the needs of deployment structure and distribution of income and regis and the infrastructure, lacking social governors and increasing social conflicts. severe natural disasters, both predict it will and unpredictable, et cetera. to meet these challenges, i work in the second decade of the 21st century, will concentrate

accelerating the transformation of the economic development patterns ensuring in improving people's livelihood, consolidating and expanding our achievements in this financial crisis, facilitating long-term study and reasonable fast economic growth and stability in the country. all of those will lay a solid foundation for a moderately prosperous society but in 2020 and this is the effort we are making in the second decade of the century. to this end, we must transform our economy from one driven by external demand to one driven by both domestic internal demands, namely domestic demands. [speaking in chinese]

>> translator: this'll be accompanied by the accelerated industrial structure. china, a lower middle income country will move to an upper middle income country at a faster pace. what is more, china will devote more effort to realizing domestic developments and to raising ethnic standards and it kind of people to work for a lofty ideal, china will become a dynamic country enjoying harmony and stability. plus, china will exceed the goal of relations. without any doubt, i believe that china will provide the rest of the world with a bigger market and greater opportunities for development. this is a big market and

misrepresent great opportunities china's past for peaceful rise. today the trend of the world development is economic globalization and interdependent international relations. in this context and coordination, proper management reform in the peaceful cooperative and beneficial manner will be the means to tackle the existing and emerging problems and such represents the main trend of development. this world as a whole will face both opportunities and challenges with the former outnumbering the latter. that is the general trend of the world. given the fact that in the first decades of the 21st century, china's peaceful development has made it an important part of the world development.

in the sun foundation of common interest has been feared between china and the united states, thanks to the global and in the second decade, china will continue to follow this path and does become a more important part of the world development. and in the same manner as the first decade, china and the united states may develop common interest which of those defined as more sustainable. [speaking in chinese] >> translator: i've noted that the concepts of common interest i've gone on in the hearts of the state may come depot.

all of this will determine the direction of china's relations with the united states and beyond. so that is my first point about china's development. china's development in the second decade of the 21st century. my second point is about china's past for the rise in the beauty of convergence adventures and communities of interest. in the second decade, china's past horizon policy of beauty and harmonious work needs to be compromised. the important thing is to expand and deepen the convergence of interest of all parties and foster communities of interest with regions in different areas and at various levels.

as i said before, we need such policy choice for china's own development, but we also needed for the common development of both our two countries. and i believe it also informs that the trend of wealth development. we hope that more and more countries will recognize and understand our policy choice. [speaking in chinese] >> translator: to expand and surest antidote communities of interest has become the policy of government in particular to expand and deepen the convergence with very partners has been incorporated into the

community's proposal of formulating the 12 programs for economic and social development, which was issued not long ago. in this address to the opening ceremony of the summit meeting, it was proposed that asian members become a close knit community of interest. president hu jintao not long ago and is telephone conversation with president obama said further that were facing important subjects on how to actively elevate the positive events of china u.s. relationships to a higher level and enter into a property partnership in areas of interest. i would like to say that in fact the convergence adventures between china and the united states has already existed. this is an actual fact.

i will not give you a comprehensive list of our achievements and trade development from 25 u.s. dollars to 890 billion u.s. dollars. [speaking in chinese] >> translator: this was unexpected by both china and the united states. since 2008, our two countries joined hands to cope with the impact of the financial crisis. wasn't as the most significant convergence of interests and special conditions at that time? yes, it was. and now we need to adapt to each other and make the necessary distance in order to work together to deal with changes in

the spirit and handle the domestic restructuring of each country. this may become and should become a new convergence adventures between our two countries. in this regard, one thing of earth our attention. the chinese and american companies are mutually complementary and interdependent in trade and now they're increasingly complementary and the investment as well. for the first time in the united states supposed u.s. investment in china and one year. of course a cumulatively china is much higher, but philosophy alone we have more investments here than in china. so this is a new development. as ambassador hans van mentioned

, investment in the infrastructure project is small and medium-sized enterprises in america's south and west will help of its economic recovery and job creation. i think this will show that china u.s., naturists are moving from the strategic macrolevel to a micro level. during this two days, apart from a dialect, china and u.s. relations, we shall also explore ways to develop convergence adventures in these communities between our two countries is certainly an important areas of clean energy. i believe this kind of discussion will not only contribute to the global effort to address the challenge of climate change, but also help promote low carbon development and energy security for

respective countries. in addition, you may crave our business opportunities for two countries. china u.s. practical cooperation in clean energy surely can expand and deepen the convergence adventures and become an important part of the communities of interest. in short, if we put together there is the financial crisis and now in the process of the restructuring of our respective countries and practical cooperation in clean energy, we find more convergent interests between our two countries and the conditions for building communities of interest in different areas and at different levels. [speaking in chinese] >> translator: even on sensitive issues, china has set

the overall interest for ballot relations and given priorities to a stable relationship. it is try to expand the convergence adventures with other parties raised on mutual respect for each other's core interests and may be concerned for interest on the issue of the korean peninsula. we have stated in explicit terms opposition to provocative acts by any side that may lead to tension and intends to develop nuclear weapons on the peninsula on the issue of taiwan we have adopted the policy of reconciliation, peace and harmony and made efforts to involve the comet chaser for people on both sides. our military modernization we have a tiered to strategic event of military expansion. on the issue of maritime security with countries concerned in a joint effort to preserve international safety. looking down the road, in the next 10 years will witness

of labor. this again present strategic opportunities for china and the united states. in the process of economic and political tensions, the basic factors in driving forces that push forward chinese u.s., china and europe and china japan relations in the past 10 years to exist, despite our problems and differences with those countries. this requires us to seek new growth point in both bilateral and multilateral relations with the need to expanding and deepening our convergence adventures, which will be beneficial to all parties. in short, it is both necessary and possible for us to work together with a global vision. pragmatics. and political wisdom to be with

bilateral and multilateral communities of interest and at different levels and the second decade of the century where we must transcend the differences in ideology and social system and the parochial attitude of closing the doors to the others. we believe this is not necessary, but also possible. one, there is accumulation of convergent interests, there will be a solid foundation for, naturists. then the condition will become ripe for beauty including, naturists, which offers mutual cooperation and excellent success. in conclusion, that you talk about chinese principles and join with other countries. dear friend, the world today is at a critical juncture and sewer china u.s. relations. looking at the first decades,

our relations including number of risks increases. we have former ambassador to the united states, and i believe he has a lot to say about this. he has memories and however, to the leaders of our two countries have steered the boat firmly away from them. our bilateral relations as a whole have developed steadily for 10 years. what about the next 10 years? without a doubt, we may inquire inquire inquire inquire. to be frank, we have such crisis

but we believed if we can draw the experience of the past 10 years, take a global vision, be pragmatic in his political wisdom in handling emergencies calmly and appropriately, we can find solutions to any problem. well, if such great confidence in ambassador huntsman as i can use you as an example. this is an important issue. this is a very important issue. at this point, i would like to quote mr. zheng bijian's words in 1987 u. s. relations facing greece difficulties. he said to general brent

scowcroft to as a special envoy of the u.s. president. mr. brent scowcroft said although they are our problems and differences of this or that kind, i relations must eventually improved. world peace and stability needed but although there is not delay sensitive, but he pointed the most important thing, especially our relations must eventually improve. at the time i asked him if i could use that sentence as the title of that chapter in his book. and if you read volumes three of

the selection of his works, you can see the title of that sentence. later i wrote that sentence by mr. president george w. bush. i think today politicians up for third two countries in this political and strategic vision in preserving and handling our bilateral relations, including interest and beauty and communities of interest in all areas. and a broader sense, this is the way china conducts itself and handles relations with other

countries in a world in the second decade of the 21st century and beyond. thank you for your attention. [applause] >> chairman zheng bijian, thank you very much. if you think a german huntsman and chairman zheng bijian representing the best of the united states and china and you listen to it they have to say, it's not difficult to conclude this relationship can be and should be and must be a constructive initially an official one. of course they of course they emphasize we have a lot of work to do as we all know come us are going to get down to work and just a minute. and i'd like to thank both of you for your contributions to your respective countries coming to your contributions to u.s.-china relations, to this particular issue of clean energy into your inspiration for the

morning. thank you very much. [applause] >> thank you --

>> up next, a conversation on china and the global economy. from "washington journal," this is 35 minute. >> host: richard mcgregor is the washington bureau chief for the financial times here to talk about the chinese president isbi it and also a new series being washed by the financial times. china shapes the world, looking at things related tong visit.wih mr. mcgregor, let's begin with what china will want from the united states.na what would the chinese president be saying to barack obama? >> guest: well, in some respects i think the chinese would like to call theat they wk aggravation is taken over u.s.-china ties recently.t you know, china benefits -- has. benefits from a stable international environment. really, the relationship has gotten out of kilter over the last few years. they would like tactical

reassurance. china obvious as the once parts of america. we want technology from the u.s.. we get to see a deal involving general of electric, which we could talk about later, which is interesting. they want that tactical reassurance. host: we had one caller that we were talking to about u.s.-china relations. one caller said that he wanted to hear tough language from barack obama. caller: i cannot speak to guest: i cannot speak for the administration, but i would guess that there would be some tough language from the u.s. laced with a lot of cool them. wherever the u.s. looks in the world, it meets china. iran, climate change, north

korea, you name it. this conciliatory line towards china has not been reciprocated. china had that moment two years ago, they were in a strong position and to manage of that. host: how have things changed? caller: -- guest: there has been a backlash. especially in asia. many countries in asia are hustling to get the u.s. back involved in the region in a much more active way. vietnam, trying to be forged ties with the u.s.. -- re-forge ties with the u.s. the same goes for correa, the philippines, taiwan.

host: we have heard a lot of discussion about chinese currency that is undervalued by some assessments. what will be said about that issue? we see that some senators, specifically senator sure, are calling on china to let the currency float. how will that impact of isabella host: -- impact the visit? guest: there is no doubt that china manipulates and controls its currency. you can see that every month. in some sense that is a sign of weakness as much as strength. money cannot come in and out of the money freely. if they did lift their currency,

i do not think that they could handle it. it might plummet rather than appreciate in the short term. currency is appropriate and the u.s. will make tough noises about pat. particularly because capitol hill wants to hear. this is not the number one issue. there are others, technological and the like -- competition issues that the u.s. needs to address. host: first, the chinese president has something to say about the u.s. currency -- calling it a product of the past. guest: he called a u.s.-led global currency product that is a thing of the past. the u.s. dollar, the policy of the fed, printing money -- all of which china feels they want

to pull over to their shores to stoke inflation. it is true, but i think that china is exaggerating to put the u.s. on the defensive. the real problem is not the u.s., but chinese military policy. that is a stick that china can use to be up the u.s. had little bit. and they will do that. host: this is from "usa today." inflation could help u.s. exports? guest: absolutely. if you have inflation in china, the goods automatically become more expensive. it does the job for you. re-evaluation by 3%, putting in inflation and doubling that. host: let's talk about the deal

that you brought up between general electric and china. guest: the core of the design is that general lecture will transfer technology to china as part of a joint venture to build their own plant in china. this is a very sensitive thing to be announcing on a trip by the chinese president to the u.s. -- chinese president to the u.s.. complained about this to the chinese premier recently. saying that we will give you access to the market, we will give you the technology. ge also, in their comments recently, they talked about

wondering whether china wants them to succeed in china or if they want to just get that expertise, knowledge, management skills, and technology. so, generally electric is really sticking out its neck. host: let's take some phone calls and talk a bit more. rodham, a democratic crime. caller: i believe the united states needs to take a much more proactive agenda. like offering tax breaks for anything made in america. taxing the things we are importing. we used to be known as a country that when you bought a car here, it was a well-made car. we have got away from making anything in this country. by shipping those jobs overseas,

in america when you want to purchase american blue jeans is more expensive than importing it at a cheaper price. guest: i think that the u.s. distillate larger manufacturer then china. i also am not sure that tax breaks is the answer. maybe in certain areas, but tax breaks on things made in the u.s. may not be a good idea. there is a host of other things that is just as important in the u.s. for competing with china. let's not use military language like combat. fixing, importing its own u.s. house in order. it is about education. basic research. many of these things would be

affected as a result. the second thing is to use global trading rules, which china has signed up for. the chinese used it to attract business from china. i have no doubt that the u.s. can compete with china but people will have to work harder. host: what do you suspect will be the middle ground? that both leaders talk about? from what i am reading in the papers they both get to publicly announce that they have made some progress here and there? guest: in some ways it is the atmosphere. this is one of those too big to fail relationships. in terms of military strategic stability, in terms of economic dynamism, there is a lot at stake.

in our lifetime these kinds of struggles will be going on and beyond. this is like a full-time management issue. there will not be a solution this week. there will not be a dramatic change. you will see people working harder to manage their differences. there will always be differences and problems. host: frank, independent line. you are next, sir. caller: i really appreciate c- span. i have been listening forever but i do not call very often. there are a member of this year -- by m 62, a white male in arkansas. a number of us are concerned about the demonization of the chinese people. we are trying to put all of the chinese in the same box. this is a vastly different culture.

they have given us a great gift. i am afraid that our politics, prejudiced, fear and confusion is going to deprive us of this wonderful gift. i would encourage listeners to ojitree.com.g look at the wonderful gift of traditional chinese medicine that we have here. have a great day and we wish you nothing but best wishes. host: if you go to the state department website and you look at the population figures, many of you have mentioned the many people there. in july 2010, an estimate was 1.3 billion.

education, about 93%. agriculture and forestry make up about 39.5% of that. richard mcgregor? guest: i agree, there is no reason to demonize the chinese people. their achievements -- mr. this traditional culture, as you say. millions of people have been lifted out of poverty. we should not underestimate the challenge facing that country. it is a massive task. in many respects, they have done very well.

host: what is the state of hu jintao's presidency? when secretary gates went to china, there seem to be a test of military power that they had no idea of. guest: i do not buy that. when hearing about this test, -- maybe he did not know -- but i do not buy that. his most important title is not president, it is party secretary of the communist party. that puts him above the military. the military is a powerful interest group but the political party is still in control. the second point is, mr. hu himself, compared to past leaders, is something of a week

later. he is like your super pure crap. -- a bureaucrat. that makes it hard to get a decision. he has got to persuade everybody. so he is not the strongest leader and people should not expect him to snap his fingers and get things done. host: 20 you think about him joining president obama for a joint news conference this week? reading the papers, he does not do interviews. guest: it will be fascinating. i wonder if it will be a real news conference or just a couple of scripted questions. he is not used to this. generally, he is shielded from the sort of thing. host: he is doing this because of prodding from the united

states? guest: absolutely, and i think it is a good thing one reason why, if, china is misunderstood is because we do not know their people. we do not have a sense of their personality. we do not know what drives them as individuals. we just have this monolithic view which allows people to demonize them. that is as much as their own making. host: front page of "in the financial times" -- they kick off a series looking at china possible global influence. i am curious. your front-page story is, lending to new heights.

your third hand line on this is, it is a stark sign of beijing's economic reach. given everything that is happening, what is with the headlines? guest: and the world bank has been the world of's development lender for the past decade. in fact, china lends more to pour states then the world bank. china claims to still be a developing country itself but it is the largest giver of development aid at the same time. so that just shows you how active they have been in according states that feel like they may have been ignored by the west. chinese diplomacy is not just happening in washington, it is happening throughout the world. host: what is china getting from

these poor countries? guest: perhaps diplomatic allegiance, but most importantly, resources. china is growing exponentially. they do not think they can depend on the world market. they want direct access to it. the same goes for coal, iron ore, copper. they want direct access to these things and they are using the money to get that. host: richard mcgregor is the bureau chief for the "financial times." next phone call. caller: the united states has 1,600 tons of recoverable coal which is enough for the united states. we sell an enormous amount of this to china at this time. if we want to slow down their economy, we could jack up the

price of coal and slow down their consumption. guest: i could assure you that that would not work. they have tons of coal coming from other countries. a coal boycott to china would fall flat on its face, i am sorry to tell you. host: hampton, georgia. caller: thank you for the great job "washington journal" is doing and for giving us an opportunity to voice our opinion. i watch a lot of c-span. i noticed that a lot of people will make their opinions, but nobody will talk about the problems of the united states. host: could you stop right there

and repeat that? caller: is it possible, through the way that exporting is set up, that the debt that china is holding, some of it could come from the importing and exporting? host: richard mcgregor? guest: yes, some of the debt has come from funding u.s. consumption. as far as where the u.s. is a creditor, i am sure there are some countries, but i do not have a list in front of me today. host: burlington, vermont. mike, good morning. caller: good morning. richard, the primaries and for china to grow militarily -- the

primary reason for trying to grow militarily -- china is simply reassembling a former empire. china uses money to obtain the resources. the u.s., unfortunately, has used our military to build up the military in four nations to exploit the resources. the leadership in those countries traditionally have been fascist, military dictatorships. south america is reacting to that and they are moving to the left.

we have a problem in south america and we also have a problem in sudan. they have the largest pool of oil outside of saudi arabia, and china is there. guest: it seems in china there is a deep sense of injustice, victimization. frankly, i think it is nurtured a little too much by the leadership to keep it going. you are also right that the u.s. and china were both forged in revolutions, but they were different revolutions. the u.s. had a democratic revolution. china had a traditionally structured communist party still in charge. the biggest gulf overtime has been the difference in their

political systems. there are some similarities but the differences are much more important. host: pennsylvania. bill on the republican line. caller: good morning. the chinese people, like all people, are good people, they are working their jobs. we do not have a problem with the chinese people. as this john indicated, the chinese are communists. what is the united states doing? we are importing a lot of plastic junk, vcr's, computers, and we are exporting cars, gold, iron, metal resources, copper.

what else is the united states doing? instead of recognizing the military power of china and trying to strategizing, as you said -- may be a slip of the tongue -- combating china, the communist regime, instead of doing that we are now fighting a group of tribes in afghanistan. guest: that is an interesting comment. you say that the u.s. is importing plastic, but americans are buying these goods. the military aspect is interesting. china's military might is growing. as it does, it will run up against the united states. one of the fundamental reason why asia has been so successful is because the region has been

kept stable by the u.s. military in korea, japan. the career in civil war is not over. japanese tensions are very real. these areas have been able to boom because of the u.s. influence there. in the next decade, china could begin to bloom. host: on that thought of dominance, a piece in "the wall street journal." a tweet from a viewer -- guest: that is an interesting

piece. i think there is some truth to that. as we discussed earlier, i think the u.s. is weak at the moment and they want to take advantage of that. however, in the u.s., i get the sense that the country has stabilized, compared to two years ago. the u.s. has expertly marshaled its allies in asia. this will be a competition -- come back, if you like -- over the next few decades, and the u.s. has to get it right if it does not want to give up power and influence in the asia- pacific. we should include in that the indian ocean, another area of chinese interest. host: "get it right." how so?

guest: you have to nurture your allies, going back to the bush administration and the indian deal. rewater the roots of the relationships of the countries in asia. but the u.s. will not be strong unless it is domestic problems are fixed. that is the biggest problem that the u.s. faces. host: you talked about the currency issue, whether or not that was a real issue. one professor, according to his research, says that that is not the issue.

host: can you explain that a little bit more? guest: we tend to focus more on the u.s.-china trade deficit. however, with asia as a whole, it has not changed. in that respect, i would agree with some of the points being made there. where i would not agree is it is not just about the currency. one of the most important exports of how the u.s. are to china -- of the u.s. are to

china, and increasingly in aerospace. in the u.s. wants to be careful that it does not build a rival industry in china for what is its iconic, global leading industry. host: bill in new jersey. good morning. caller: one thing i notice about china is they have unfair trade policies. i work for a juice processing plant, so i know. two years ago they started selling -- under selling apple juice on the market. since then they have just about put the american brands out of business. if you look at the ingredients,

there is apple juice somewhere in there. it is a small thing, but it is an example of what they're doing. guest: that is interesting. you make two. there. first of all, it is true that china has state monopolies, increasingly a target to trade policies. the second thing about their apple exports, juice, is fascinating, if true. that would be largely private chinese companies. china has to feed 1.3 billion people. garlic does not sound like much, but the south koreans, it is one of their staple foods, and the chinese took over that market. i do not know if it is true, but it just shows that the power of

the chinese extend beyond just plastics. host: talking about rising food prices, what is china's role in that? guest: not much. they are suffering from it as well. i think the administration is actually pretty freaked out from it. host: will they ask the united states to do something about it? guest: no, they will do the sorts of things that we talked about before, quantitative easing, monetary policy, adding to global inflation pressures. host: windham, connecticut. stephen on the independent line. caller: good morning. we just saw a revolution in tunisia. one of the kicking points was

inflation in food. i read in your newspaper about the housing bubble in beijing, the real-estate bubble. could you explain more what is causing inflation? i really enjoy classical chinese literature. i have always had something of a love affair with china -- maybe more of a love-hate relationship. this is causing problems in north africa. what is going on with that? guest: i do not know if i can provide the absolute answer, but within china, it is chinese monetary easing. china flooded the world economy with crash to make sure the economy did not fall off a cliff. that is the first thing.

too much money chasing too few goods, the old explanation for inflation. china has also had all sorts of problems with agriculture in the past year. there are some shortages of staple crops. some of the prices for the agricultural goods they do in court, such as soybeans, are going up. so it is a combination of factors. host: "the wall street journal" from the 14th. do you need a chinese bank account -- guest: >> guest: i would like one but i'm not in the position to have the account. if you have a residency in hong

kong you can have a written account, but i think it is wrong on one point there are some -- there are places where you can currently get a great interest rate. host: until now, we have had few options to hold yaun, but they say -- guest: i will go there later this morning. host: cottonwood, idaho. you are next. caller: i would like to ask about the practice that china seems to have. they go up into those

countries and get the resources and lock them up for chinese use. we do not need to fear the chinese people at all. the chinese government is very communistic and very ambitious. i think they are very dangerous. walk softly and carry a big stick. well, america does not have a big stick to carry any more, so meanwhile, we have to power, while china is going around the world and buying up resources, putting us in an untenable situation. american people, pray and ask god for wisdom on how to deal with china. we need to be friends, but we also need to be cautious about

their government. guest: i do not think the u.s. is cowering. no doubt, china is growing in influence and using the influence to get the resources it things it desperately needs. for whatever reason, when the u.s. went into iraq, it was not to keep the chinese out. but i do not know whether there

how is the debate to repeal the health care law going so far? >> guest: its continuing on the house floor. they just had members of the judiciary committee on the republican and democratic side. what they are doing on the house floor is having the different committees of jurisdiction to determine and the seven hours of debate. sojourner judiciary just finish. a lot of people might be wondering the tone of the debate right now begin discussions about political rhetoric and the tone of the rhetoric especially in light of violence in tucson arizona involving congresswoman gabriel and deferreds.

i would say so for the debate has been about policy, has been relatively high minded. no personal attack, no incendiary rhetoric. there is a lot of opposition to the health care bill on the republican side and fair for soliciting the opposition that they are stating its on policy grounds. democrats are defending the bill and attacking the republicans' policies but that is what they are here to do. so so far it's been basically an non-policy. >> host: the seven hours of debate is don hauer devotes expected to step up? >> guest: you're going to be looking at probably unanimous republican votes to repeal the health care affordable care act and we are looking at a handful of democrats who will probably also vote to repeal. of course you don't know how many that will be on till the vote comes down. people around here are getting anywhere between six to a dozen democrats and a couple of them may change their votes.

at the time it seems like a good thing to do but the voters of spoken clearly in this last election. i will vote to repeal. of course this is an entirely political exercise. harry reid the senate majority leader has said he feels no motivation to put this bill on the senate floor and even if he did it is almost impossible to imagine president obama signing of the repeal of his signature domestic policy victory. so, a political exercise your, mostly almost all republicans for the repeal, nearly all democrats against. scirica mengin senate majority leader harry reid. today house majority of leader eric cantor from virginia said harry reid has the vote to stop he should go ahead and schedule the vote. what was that? was that a there? >> it sounded like that, many of us to get as a dare. i don't know that it's going to move senator read off of his

position at all. he controls the senate floor and also don't forget when something is on the senate floor he doesn't have complete control for the parameters of the debate. republicans in favor of the repeal could fire lots of amendments and keep the repeal debate going on much longer than harry reid would have liked so it doesn't operate like the house where if you have the votes on the floor with the chips fall where they made. the senate is more complicated. harry reid knows it and since he controls which bills come to the floor and which do not he would probably rather never see the light of day. >> todd zwillich for public radio international, thank you. >> my pleasure.

now, a discussion on u.s.-china relations and energy policy. we will hear about how the two countries are working together on energy technology in areas such as coal-fired power plants. from the brookings institution, this is 90 minutes. >> i hope everyone has earphone's because we have both

speakers in chinese and the english. allow me to speak in chinese. [speaking in chinese] mr. sorton and our guests, ladies and gentlemen, good morning. i am very honored today. i am the vice chairman of the china institute for innovation and development strategy and also the executive vice council chairman for the china energy research society. today i feel very honored to facilitate this session at this forum.

we have six distinguished leaders and experts who are present here today to deliver their speech. as a moderator coming and i feel this is the easy job for me, so i would just introduce them and i would just watch time for them. 15 minutes for each person. after the speeches we hope we will have some time for q&a for the audience. because we have to finish in an hour and a half. that's why we have to be on schedule. we will try to give more time to our speakers. so the first speaker will be

mr. jon holder, the assistant to the president for science and technology director of the white house office of science and technology policy. mr. jon holdren has been for a while and a very well-known and outstanding scientist and educational list, and so he has a long experience behind him and so now we would like to invite mr. holdren to come and give his speech to us. thank you. [applause] >> term, minister juan, excellencies, it is an honor and privilege to be here to address this very important meeting on clean energy cooperation between

china and the united states. i want to start with what i see as the essence of the challenge of the intersection of energy technology and climate change. the essence is without energy there is no economy. without climate, there is no environment. without economy and environment, there is no material well-being, no civil society, no security for anyone. the trouble is that the world is getting most of the energy our economies need in ways that threaten the climate that our environment needs. we need a rapid transition to queen, meaning particularly no carbon and low carbon resources. delaying action in this transition is dangerous. most of the scientists to think about climate change and its impact have concluded that the most prudent target that is still attainable is to try to

limit the global average surface devotee increase to about 2 degrees celsius above the preindustrial level. the european union increased that in 2002. the g8 and the g20 both embraced it in 2009. but to have just a 50% chance of staying below an increase of 2 degrees celsius the developed country emissions need to peak no later than 2015 and to decline rapidly thereafter and developing country additions thereafter. the world's energy system is like a supertanker. it is immense, expensive and it is difficult to steer. this is a statistical look at the world energy economy, the fossil fuel supertanker in the sense that eda 2% of the world's energy in 2008 was still coming

from fossil fuels and some of the largest users and he matters are listed there. china and the united states with about 85% dependent on fossil fuels. russia, over 90%. india about two-thirds. that supertanker is on a dangerous course. consider projections going forward of coal-fired electric power for the next 20 years. those projections have coal-fired electricity generating capacity nearly doubling from to doesn't five to 2013. a large part of the increase in china and india. if those are conventional power plants not capturing and sequestering the carbon dioxide, the impact on global climate would be immense, perhaps unmanageable. there is a lot that could be done. there is a victory on supply curve if you will showing the

cost and the quantities for potential contributions to an emissions trajectory out to 2030 that would put us on track to achieve this result that would give a good chance of staying below 2 degrees celsius, and what you see is lines below the zero-point barr's below the zero-point indicate contributions was actually pay. it hit - costs under current market conditions. the bar above the line have positive costs under current market conditions. one has to pay to avoid those carbon emissions by these means. you see an immense variety of technology there. this reminds us that there is no silver bullet. as jim rogers, the ceo of duke energy likes to say he calls me silver shotgun holdren because i keep saying there is no silver bullet. we need many bullets in order to

address this particular problem. thinking about the curve tells us something about the kind of policies that we need in order to be on this trajectory. the so-called low hanging fruit if we use the metaphor of a fruit tree the low hanging fruit is the set of options that would actually pay off economically even under current market conditions, but we are not currently picking very much of the fruit and we are not because there are barriers and prefers incentives and a lack of financing and information. in order to get the low hanging fruit we need policies to reduce or remove the barriers. in the middle of the supply curve are options that have a modest positive cost and which we would embrace. the marketplace would increase if they were a modest price on greenhouse gas emissions including particularly carbon dioxide emissions so we need a carvin price to motivate us to

reach high year into the treaty. of the far right are the most expensive options. those that even with a modest price on carbon wouldn't be within reach and this is where we need research development and demonstration in order to lower the highest hanging fruit to reach and that is mostly what i want to talk about today of course given the topic of the meeting. what we most need from research development and demonstration in this domain? we need more energy efficient commercial and residential buildings and industrial process these. we need clean more efficient motor vehicles, hybrids, electrics, fuel cell vehicles. we need biofuels that don't compete with food and forests. we need improved coal technology to make electricity and hydrogen while capturing the, dioxide away [inaudible]

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again, making china a test bed if you will for the deployment of advanced technologies. only in the carbon capture and sequestration does the united states currently have more planned activity and current activity than china does but that picture is rapidly changing. both countries in a sense should be seen as test beds for the other in this immensely important domain of developing and deploying and technologies that capture and sequester carbon dioxide. but there are other factors that favor the cooperation. cooperation and competition are increasingly recognized as not incompatible, but rather complementary contributors innovation. in a number of respects, innovation has been becoming plus national and more multinational and more international for some time. that's been happening for the efforts of multinational and global corporations, through across national corporate joint ventures through rapidly

proliferating university to university and ngo to ngo, cooperative projects in science and technology and other products that actually went the public and private sectors of the two countries. and the united states and china have a long history of cooperation in science and technology going all the way back to 1979. the first formal agreement between the two countries following the normalization of relations was the agreement on science and technology cooperation signed by present carter. under it there have been joint commission meetings on science and technology cooperation coacher by the ministry of science and technology on the chinese side and the office of science and technology policy in the white house on the u.s. side. all of this time the participants in those meetings come from departments and ministries of state and foreign affairs, treasury and finance, commerce energy in addition to the ministry of science and technology and the osd pieta

those meetings take place every two years with meetings of the executive secretary level when the train. there has been under the auspices of the joint commission meetings the tremendous progress, tremendous achievement across a wide range of fields. high energy physics, disease control and prevention, environmental protection agency's cooperating on air pollution monitoring, modeling control strategies and cooperation involving universities the ministry of science and technology, the u.s. department of energy on cleaning vehicles, kunkel technology and energy modeling and that cooperation on clean energy in particular has been expanding rapidly as it should. that will be discussed in more detail i know by assistant secretary david sandalow and other speakers but i want to say in closing that the obama administration strongly supports the extension and expansion of these important cooperative efforts between the united states and china. thank you very much. [applause]

>> we have one minute or two minutes for questions. a question of all the speakers. [speaking in chinese] >> translator: we are very honored to invite the vice chair of the committee, the minister wan gang to give a speech. other than the fact he is the leader of scientific matters in the country, that he personally is so very involved and experts in terms of the new type of

vehicles. so welcome him. [applause] >> [speaking in chinese] >> translator: thank you, professor, honorable chairman, honorable mr. deutch, dr. holdren, mr. sandalow, assistant secretary, distinguished guests, ladies and gentlemen, good morning. i'm very glad to turn the china of u.s. relations for a for the 21st century and the session of strategic forum on u.s.-china clean energy cooperation. i believe cooperation is highly important. this is what we need urgently. on behalf of the ministry of science and technology of china i would like to congratulate on the convening of this form. my thanks go to the brookings institute and the china institute for innovation

development strategy for your preparation and arrangements. thank you. >> ladies and gentlemen, efforts of the international community, the world economy is slowly recovering. but this recovery is after the basis with the balanced progress and certain uncertainties. meanwhile, however, as my friend, dr. holdren, mentioned climate change, energy and resource security, a major natural disasters, etc. as well as over global challenges against more prominence. but energy development for the economy has been making the global challenges more severe for us. faced with these challenges, no country can settle them alone.

we must rely on some technology and innovation and join hands to promote emissions reduction. in that way we can promote the civilization from the fossil energy era to clean energy from industrial economy development to information economy from industrial civilizations to the pecos civilization. this has been the common consensus for the whole world. china is a developing country with a huge population. we are now in the process of development. but during this process, we attach great and fortune to save energy to reduce carbon dioxide emissions to reduce energy consumption per unit of gdp and carbon dioxide emissions.

the chinese government has great importance to innovation in the energy field. from 1990 to 2005, china's energy consumption to the unit of gdp and carbon dioxide emissions intensity was reduced by 46%. as present, chinese government proposed that by 2020 carbon dioxide emissions per unit of gdp will be reduced by 40 to 45% compared with the 2005 level. energy will take up about 15% of energy consumption. perhaps the figures are not so interesting. let me cite a few examples for you. the professor mentioned about vehicles. for that goal by 2020 for each

carbon monoxide emission will buy 115 to 110 grams but at that time the european countries reached the grants per kilometer so that will be a great challenge for china. in order to achieve the goal we must accelerate the application of advanced technology to transform the conventional industries, promote reduction in key areas and accelerate including new energies, create new economic growth points to the low carbon economy and the cycle economy to address climate change. in doing so, we can build

economic development on the solid basis of the friendly environment and energy resource conservation efforts. our work mainly includes the following. first, complete related laws and regulations to create a favorable policy environment for the development of clean energy technology. recently we have promoted energy law the now flying for the national, middle actions to address climate change and renewable energy long term development plan. those have contributed greatly and later found policy environment for china to date to reduce emissions and develop new energy technologies pit from different walks of life and the energy communities we have been working together to achieve that

goal. and together we have vigorously promoted ki demonstration projects and energy conservation reductions technology and we try to force the strategic emerging industry as the new growth point. energy conservation and the hinkle demonstration programs have been demonstrated in 25 cities in china and public transportation area 7500 new energy vehicles have been promoted as used for the l.i.e. delighting application program in 21 pilot cities in china we have promoted and used over 1.6 million led lights of the various type saving energy by about 164 kilowatts every year. for the smart and critic

generation program china has given support to more than 100 generation projects and in the coming two years but technologies will be supportive for about 640 megawatts. for the 2008 beijing olympic games and the 2010 expo demonstrated new energy vehicles led world power. for the expo we have the largest ever 1,000 of the hinkle new energy demonstration in that area and in the 3.8 square kilometers of the expo park, npv roofs have provided about half

of the electricity needed by the new energy vehicles. that shows that we can use new and clean energy to promote the cicione economic development of china. the new energy technology international cooperation and exchange and the new patent that is naturally beneficial, reciprocal and in progress to get china has found technology cooperation agreements with 97 countries like the united states we have participated as well as other major international cooperation programs projects and let me report we have worked hard toward that goal and have

full confidence to achieve our goal. china and the united states will and energy cooperation should take the lead and set a good example for the whole world. as dr. holdren mentioned just now, since the finding of the china technology cooperation agreement in 1979, we've been conducting clean energy technology cooperation during the past 32 years that we achieved fruit for the results under the agreement and on the platform of jcm we jointly build beijing experiment projects etc.. between most of china and the united states we find and implemented a series of collaborative including china and u.s. nuclear physics and

mathematics china u.s. energy technology developments utilization protocol which we celebrated for its tenth anniversary last year and also china u.s. efficiency and renewable energy technology development collaborative. in the coming two years, with the efforts of the two governments and the research institutes, universities and enterprises of the countries we have made new breakthroughs in this area. in a november, 2,009, the two countries jointly announced the establishment of china u.s. clean energy. in the coming five years we can jointly invest $150 million to invest the establishment of a consortium in the parity areas mainly queen coal in the u.s., an energy vehicles and energy

efficiency. the consortium consisted by universities national laboratories and clean energy enterprises of the country's. the work plan report to the steering committee meeting for the work progress every year. later on today we will witness the unveiling and the signing of the work of the consortium. in net last july in a meeting cochaired by steven chu of the u.s. dod, and the united states joined the proposed the electric vehicle initiative in regards from different countries including germany, france and the u.k.. according to the initiative we will pick up some demonstration cities at the transportation area between shanghai will have

a demonstration collaboration to the commercialization experienced sharing and also between ina and the energy company they will jointly establish cleanenergy ecosystem in the province of china and north carolina and not the u.s. to demonstrate the application of building energy efficiency, new energy vehicles and a clean coal technologies in the effort cities. we can promote collaboration in other areas including basic research environment, health etc. ladies and gentlemen let's work together under the framework of china u.s. agreements. on a serious platform like this we should continue to facilitate the collaboration between countries and the clean energy areas.

my vision is that through collaboration we should promote the collaboration between the industries of the country's to facilitate the business and the trade development of the two countries between enterprises of china and the u.s. there might be competition, but here we see today more cooperation that have achieved mutual benefits and outcome and have contributed greatly to the benefits of the people of china and the u.s. and to the whole world. thank you. [applause] thank you for your very warm inspiring words to be the next we would like to have assistant secretary of the department of

energy to say a few words. and obviously he has a long rich experience and publications on the issue so assistant secretary, please. [applause] >> thank you. mr. conductor holdren, dr. deutch, distinguished guests, let me start by congratulating brookings and the china institute for innovation and development strategy on this timely important process to be that brookings a special thanks to jon thornton, stir until it and can lead in fall. and to the entire team congratulations on your visit

that brought all of us here today. i'm going to discuss three topics. first the u.s. and chinese energy economies, second, the reason it makes sense for us to cooperate and third, some of the programs we have under way to do exactly that the rate of what we start with some basic statistics. together china and the united states consume about 40% of the world's energy, a little bit less. it goes to 2008 and is trending upwards in 2009. together it accounts for more than 40% of global greenhouse gas emissions. china is currently the largest emitter of greenhouse gases. the u.s. is the larger historical a matter if you get this dhaka for the last 20 years of the greenhouse gas emissions but in both of our country's. but there is still a big gap in the per-capita energy use as you can see here this is primary

consumption and millions of btu per person. china much, much lower than the united states. but china's economy is much more energy intensive than the united states as we can see here. that is a result of a number of factors. have your industrial sector compared to a service sector. many more opportunities to improve energy efficiency in china and the united states although we both have extraordinary opportunities to benefit by doing exactly that. here are some statistics site might be interesting to compare and contrast. throughout china and the united states and the blue population 1.3 billion in china, a little for 300 million in the united states. coal consumption, china has about 46% of the world's consumption. we have about 13% a year in the united states. here's an interesting one i'm going to come back to.

annual motor vehicle production. today, more than twice the number of vehicles made in the united states are being made in china. dramatic change from only a couple of years ago. here is an interesting one that i think it may not surprise people in this room but i think it would surprise a lot of americans. high-tech exports. china and the united states of roughly the same percentage today of high-tech exports as a percentage of their overall manufactured exports. current greenhouse gas emissions are about equal in the country. china is a little bit greater. greenhouse gas emissions another version dating back to 1850 and much bigger than the united states and china. greenhouse gas emissions per capita bigger than the united states and china. energy consumption roughly the same and here is an interesting one. vehicles per hundred people. about 80 here in the united states and about six in china.

i thought it might be useful to look at a comparison of the way that we produce electricity. one similarity that stands out is we both rely heavily on coal. it's about half of our electricity generation in the united states. it's almost 80% in china. the difference is largely made up by the united states greater relative use of both nuclear and about 20%. gas about 21% here in the united states. china has a greater use of hydro. i think the projections in both countries certainly in our country is for increasing percentage of natural gas in the year ahead and china is scaling up and nuclear and other areas as well. in the vehicle sector where the oil is used both countries now in porter than half of their oil. we became a net importer here in the 1940's. china became an importer in the

1990's. two of the three largest importers in the world, and that by the way is a very strong interest between the two countries. here is what i referred to earlier. i think this is an extremely striking grass. if you look at 2007 and compare chinese auto production to the u.s. auto production in that year u.s. although production which is the blue line with significantly above china. look at the trends here with our economic financial the crisis in 2008 and other issues on the auto production fell very sharply. china sharply in exactly the same pogo as anyone who has spent time in beijing can tell you. most chinese production is sold to the rapidly growing domestic market. look at this curve. hard to say when that -- with the slogan is going to be in the years ahead but it is rising extremely sharply.

and this for me is especially frightening. china is going to add about 60 of 300 billion square feet of floor space. china is predicted to add exactly that amount in the next 15 or 20 years. china is going to build another united states of building stock according to most projections in the next 15 or 20 years. it's just a word on our complementary difference is and why to cooperate in think jon holdren has already spoken extremely articulate on this. i would just add a few additional thoughts on innovation the united states as a mature network of university national lab is in china. this is a growing national priority. just a couple of months ago minister and dr. holdren cochaired extremely productive conversations between the government on innovation policy. we have a lot to learn from each other. the two governments have not always seen completely eye to

eye on innovation policy but they are a lot we can learn from each other and we have a lot of progress that needs discussion. in the credit markets there have been recent challenges in the united states. credit in china is abundant. capital markets are well developed here in the united states with venture capital and private equity. significant volumes of low-cost capital in china. so work here in the united states must lead replacing existing stock in china. there are rampant strikes with new build which dr. speed already referred to as an opportunity for test bans and china. by working together we can drive down costs and accelerate clean energy revolution. science and technology have been a condition of u.s.-china cooperations. here is jimmy carter signing the agreement. henneberger to those of my president obama and president hu announced seven clean energy

initiatives. here they are. it clean energy research center that the minister has already spoken about and so has dr. holdren. in electronic vehicle initiative and energy efficiency action plan, green global partnership, 21st century coal initiative and a business cooperation program we called the energy cooperation program. this reflects the potential for the queen energy cooperation and today the department of energy's is on our website www.energy.gov that provides the details of the work done for what last year in the u.s.-china initiative. let me just talk about a few of them be the flagship program here at the research center is the first of its kind, joint clean energy brings together teams of u.s. and chinese scientific engineers more than

150 of whom have come to washington, d.c. today and tomorrow and many are here in the room. thank you for your commitment to this work, a hugely important and a tremendous opportunity we believe. $150 million of public funding over five years split evenly between the two countries. the past couple of weeks it had people tell me both that's too little and too much so maybe we got it right and the initial topic areas are building, coal and vehicles. here is my roskam secretary chu with the minister at the signing of the korean energy research center agreement last year along with u.s. commerce secretary barry locke. this is in the great hall of the people. at the department of energy in the past year we release what we call a funding opportunity announcement. it's a legal american term offering funding for consortium

to implement the u.s. and china clean energy research program. we received 25 different applications and rigorous process selected west virginia university to run a cool consortium to in the vehicle consortium and the lab to run the building consortium. you can see these are very much group efforts with u.s. companies, research institutions, very deeply involved. over the course of the past several months to groups of been working with chinese counterparts to come up with work plans which are going to be signed in just a few moments in this building. we've also made a lot of progress on the u.s.-china electronic vehicle initiative and that is in no small measure due to the leadership and vision of minister juan sitting here who is an expert on these topics along with the vision and leadership secretary chu. along the work we've done at the argon national lab in august we brought together u.s. and chinese to learn from each other

on technology road map in hand procedures and electronic vehicle demonstrations and infrastructure. this is an area the countries have enormous amount to learn from each other both our countries will be better off with the vehicles in the other. this is of the one of the most exciting areas energy technology extraordinary technological advance, the trade development agency and they jointly hosted a gas training program in beijing. the u.s. geological service is working to assessment of the china shell gas consortium and the host of a policy dialogue. i thought i would end with a picture of the waterfront. this is two years after i had a

chance to see the shanghai waterfront. i lived in shanghai in the summer of 81 and here it is today. 1983 and today. for anyone who thinks that the largest countries, the economy, developed countries in the world can work together. for anybody that thinks the climate challenges are insurmountable and things we can't innovate in energy technology look at what's happened in this great country over 27 years and in 27 years into the future aggression what it might be. thank you. [applause]

thank you very much mr. sandalow for your remarks. i also like to add that he's played it very important will and made great contribution to the u.s. collaboration clean energy. our next speaker will be president of china energy research society. he also serves china political consultations council and he has been very active in energy and power industry and he used to be the governor of the province. [applause]

ladies and gentlemen, i am very pleased to have this opportunity and share with you societies and the views and opinions of energy issues in china and the purpose is to bring more understanding to our collaboration, and i have three issues to share with you. first, this is a basic evaluation not the future energy supply in china with the rapid

increase in the economy in china the basis for the rapid developing chinese economy is the chinese energy industry. >> [speaking in chinese] >> translator: based on our observation of the previous year's observation of the chinese energy supply and consumption and we made the following several observations as several predictions. number one, energy supply consumption will continue to interest. chinese government has proposed that by 2020, china will triple

its gdp, double the gdp of 2,000 by the middle of the century the chinese society will have relative modernization. the rapidly growing economy brings the rapid growth of energy consumption. we estimate that the chinese energy consumption continues to increase of the average speed of 8.9% since the beginning of century and also based on the current energy efficiency by 2020. china's energy consumption will

account for half of the total global energy consumption. this is going to impose tremendous pressure in the research environment. second, coal based energy supply structure will remain pretty much the same in the future. we are estimated energy reserves 90% of the fiscal and patrol accounts for 6% and natural gas 1%. so based on our natural endowment, which is obviously

thinks too cold and there will be very difficult for us to change the current energy consumption and supply structure. kohl will continue to be the major source of energy based on our prediction by 2020. kohl will account for 55% of the non-renewable energy consumption with a total of 3.8 billion by 2015, coal consumption will still account for 50% of the total energy consumption. the third assessment, renewable clean energy will make great strides. natural resources and environmental restrictions and

believe that renewable clean energy will be a very important source for the future energy supply for china. the chinese government has found that by 2020 now fossil energy will account for 15% of non-renewable energy consumption and we see increasingly restrictive goals. we estimate this percentage will continue to increase after 2020 and we know that while facing very severe challenges in china in terms of energy supply. we have to make wise intelligent judgment evaluations in this area and this will help us find solutions to face the challenges the first challenge, the energy

consumption is tremendous and the sustainable supply is under great pressure based on the research of my society. it's in the chinese economy continues to grow at the current 8.9% annually and the chinese the firm and somehow can manage to reduce per unit gdp by 20% every five years. by 2020 china energy consumption will still account for 20% of the world's total. if we look at coal and if we continue to use and consume a speed of a billion a year. no matter how much we have, no matter how much coal we have it is going to be eventually depleted.

we have to have overall number, overall control and a balanced adjustment of the overall energy consumption structure. the second, we have very poor energy structure that exerts great pressure on environment. in 2010 now renewable energy consumption accounts for 70% which is 40% higher than the global average. if we look electricity consumption in 2010 a total 4.2 million kilowatts electricity consumption coal-fired power plants account for 80% of that. 80% of that is from coal-fired power plants.

there is a massive use of coal has created a number of serious problems for china. for example, the transportation and half of it, half of the capacity is used to transport coal and a number of environmental problems under ground water deterioration, air pollution, sinkholes and of course the massive use of coal brings tremendous co2 emissions. next we have very low energy efficiency which increases energy consumption. the sound statistics. 70% of the world total china consumes close to 18% of the

world energy resources. which is a very low efficiency. the main reason for the low energy efficiency is because of the current economic development model and china is heavily dependent on the fixed investment and export. it's too much tilted toward raw material and general manufacturing at the same time because of the poor technology, china's equipment compared to other countries especially the developing countries have very low efficiency. ..

and 55% dependent imported oil. so it's increasing living standards of the chinese will and we see -- we believe that oil consumption will continue to

increase rapidly in order to satisfy domestic needs. and had we look at the overall international environment for oil supplies and how to achieve a balance between the domestic and overseas market and how to establish a pre-warning mechanism for oil supply. this is a very serious challenge for both industry and government been seen on these challenges, we have to make necessary adjustments. we think we need to approach this from six suspects. first, we have to move to science-based energy production and energy consumption. second, we have to move coal-based energy can function

to green diversified and low carbon energy development. third, we have to move from our overdependence domestic energy to a balanced dependence on both domestic and international markets. and fourth, we have to protect the environment and we cannot sacrifice environment for the development of the economy. and first we have to move from energy dependence of open model to innovation and science driven development model. physics is we have to develop a diversified portfolio of energy supply.

[speaking in chinese] >> translator: . point. some of our visions for china's energies and energy. we can't step on the same path of this high-energy consumption of the developing countries. we have to stay below the average of the developing countries but we are modernizing china. recently china energy researchers society held a forum, discussing energy development for the five-year plan. and experts share their opinions and their analysis on china's energy strategy here and to share their opinions with you. we believe that there are four characteristics and china's

energy strategy. it should be scientific, i.e. efficient tea, green and low carbon. scientific is the number one -- number one strategic your touristic. we have to depend on technology to support our economy. high efficiency puts conservation is a priority and we have to conserve. we have to preserve in order to achieve a good balance. green means we have to be environmentally friendly inner energy development. no carbon is we need to reduce emissions intensity of

greenhouse gas. and at the same time, we have to affect only control the growth of greenhouse gas emissions. so they're six aspects. first we need to prioritize conservation, control total consumption. conservation efficient the in toto consumption control. these are the three priorities. we hope their efforts by 2020 the total energy come the team will be controlled with a 45 billion tce peer by 2050 come the total energy consumption will be controlled between 5 billion to 5 billion tce. this cholestasis up the current china -- chinese gdp in your growth.

the second aspect we need to continue the scientific development of coal in the development of clean coal energy and make necessary strategic adjustment. coal mining must be safe, must be highly efficient and environmentally friendly. this is a task we have to step up. and the percentage of coal in our total energy consumption will continue -- should continue to decrease hopefully by 2050, will reduce it to 40% or below 35%. at the same time, we need to try her best to reduce the speed -- the increasing speed of the coal consumption and we hope eventually it's going to reach a peak and stabilize.

the third aspect is we need to continue to support gas and oil as strategic resources. and we're going to expand our exploration and act as we import gas and oil. natural gas is very clean energy and it has a very big growth in our energy overall structure. it will try our best to increase its percentage inner energy consumption. we hope by 2030, our domestic supply will be 10% of the non-renewable energy supply. and the fourth aspect that will continue to hydropower and other

renewable energy. the hydropower is the first priority for renewable energy development before 2013. we hope by 2020, 2030, 2050, we reach capacity of 300 million kilowatts, 400 pima kilowatts and eventually 500 million kilowatts. and we'll try to take advantage of the solar energy for the environment so they will become the new killers of our green energy sources and non-water or hydraulic renewable energy by the year 2020, 2030 and 2050. but it's total contribution that will respectively reach

200 million tons in respect of years. renewable energy, whether it's water or non-water, we know the strategic position will continue to be created from that of an alternative energy to one of the leading energy sources. now, on a fifth point, those second-generation energy technologies that passed already matured come especially along the coastal area we should continue to develop and continue to work with the generation energy so we can speed up development so in 2022 nuclear power generation will be able to reach 70 to 80 million kilowatts by 2020.

200 million-kilowatt and 2050 over 400 million kilowatts so will bill to provide even more energy by 15%. i hope that we will continue to develop energy that are highly efficient and safe and intelligent so that will continue to improve the existence. ladies and gentlemen, the chinese new energy strategy -- the implementation of the strategy is dependable on the mutual cooperation are to energy powers, china and the united states. so i would like to propose that in this particular energy area will continue to enforce coordination and cooperation that will appeal to tackle the

problems that are now happening around the world. thank you very much. [applause] [inaudible] -- for the ceremony of the china clean energy meeting. but maybe they are already left. so next speaker will be john deutch. i'm sorry. i'll speak in chinese. [speaking in chinese] >> translator: mr. deutsch is kind of a legend because i remember he was speaking at mit in the 1940s and had written over 140 publications and also

at the national defense secretary or cia or the energy department. he was the leaker's. as far as director of the cia. so politically and also in terms of energy, he's an expert. so now we would like to get the floor to him. thank you. [applause] >> thank you very much, zhou dadi. i always enjoy these panels with zhou dadi with as many places in the world. but the most exciting time i spent with him was in the houston rodeo in texas. and they'll be selling pictures of zhou dadi in a big texas had at a texas rodeo out right after the session. i was not supposed to speak at

this session i subsequently organize, but it will offer a few comments. our first trip to china was in 1977 with frank price who is then the president science advisor. and the purpose was to negotiate in chinese the first student exchange to the united states, which you have heard from mr. holbrooke was confirmed and president carter, an agreement i was at. i returned to mit in 1980 and welcomed the first for teen chinese students who arrived. who can imagine the extent of interaction that has taken place

in science and technology since that time? i do not know of any technical person in the united states who has not visited china in an effort to understand the activities that are going on. consider cooperative projects and indeed to the her business opportunities. it is a fantastic and unimaginable change in 30, 40 i do think there are challenges to further progress. and in my brief comment that went to mention three. three comments about the challenges from a u.s. give. the first day since 1977 i returned in 78 with secretary james schlesinger, the first secretary of the department of

energy and a former cia director as well. every time a u.s. cabinet officer has gone to china, a cooperative science and technology agreement has been signed. and they urge us to look to the current technical duties that are taking place as opposed to the agreement. and here i am most pleased about the signing ceremony, which is going on outside, which is a concrete effort to develop a joint research and development program in automobiles, clean coal and building efficiency. and i know there are many other industrial operations cooperations going forward, joint chinese u.s. activities, which deserve our attention. this is the area which needs to

be accelerated. second point i want to make is a challenge. the anxiousness than i have about u.s. attitudes, especially in green tech allergies, solar technologies and biomass and other technologies among young technical people of the united states. they are passionately concerned about the chart that mr. sandalow showed up other expenditures in government support about government technology in china and the united states. and i must say these young technical people in the united states come in the clean energy area are passionate and they are angry it. now they are not clear whether they are angry against the united states government, who should be doing more for

increased the chinese government for doing so much. but this is a matter which deserves attention, especially in the political world in which we live. the anxiety of the difference in the effort which are being made in energy, research development in our two countries. it must be addressed and actually a bilateral group such as this one is the kind of community that could address in a construct way because the debate goes on without any attention to data. it is based on opinion. the third is a more distant challenge. why are we doing this technology cooperation? we are doing this technology cooperation because we believe that it will lead to mutually beneficial economic opportunity for both of our countries and

therefore for the benefit of our citizens. it is the economic benefits that we can jointly enjoy that is a motivation for the technology, investments and cooperation. and here, there are three items which must simultaneously move forward from the american side and similar movements are well as i know the united states. those three? 's first is a reduction in export controls by the united states. and here he makes a president obama has the beginnings of a very important issue. the second must be greatly facilitated possibilities for investment by china and the united states. in the third must be the opening

in a realistic way of chinese market to u.s. industry to invest and to operate in china. so i pose an additional, to beyond a clean energy tech lg cooperation, the challenges come in unless we move forward on august 3 fronts, we will not reach the benefits that oath our countries deserve. thank you very much. [applause] [speaking in chinese] >> translator: thank you very much, mr. deutsch. all of the speakers today are all pure drives by one theme, that they are all very senior people in the there'll also scientists. and so the next speaker is mr. wan gang, who is a member of

the chinese academy hearing. he is friend sent me, the biggest coal mining province of china. he was the dean of the university there, so the npc of shin the, the second in possession, so he's an expert as well as a highly respected expert. so i would like to give the floor to him. thank you. thank you very much. [speaking in chinese] >> translator: distinguished guests, ladies and gentlemen, good morning. my title today is about promoting a sensitive corporation and to promote the development of clean coal. the climate change is a

challenge that we both face. it is a global issue. we know it has to deal with the energy development, but it will also affect the development of each individual country because it will have a social economic affect on the country. as the ones were spoken before me, this kind of global challenges not properly handled can bring new conflicts and differences. and it can handle that it will produce a lot of affinity to allow china and u.s. to enhance their corporations so we will be able to achieve results. currently, the consumption -- total consumption in china has r.d. exceeded that of the united states and were expecting to see more in the future. for the future, how do we balance a reduction as well as

to continue to produce clean energy has become a huge strategy in china. currently we depend on domestic forces. we are using the most 90% -- almost 90% of our sources come from china. because we have very limited research and coal and natural gas, therefore we are relying heavily on coal. currently it accounts for 70% of the total consumption. currently we have not come at peak in terms of industrialization. and so are per capital admission is still lower than other countries. we need to jobs created to them

by organizations. therefore we can expect that you would have even higher commission. so huckabee urbanized and how can we industrialized well as we continue to develop the economy, but can also control the emission -- this is a very big issue and challenge faced by china. because currently our industrial structure is really not too balanced. and so, we need to develop an economy. also reducing imation, we really need to do other better options. we need to develop even faster the clean coal energy and also the low emission coal and technology so that as we develop this new energy.

ultimately will be able to develop a sustainable development. we need to work -- speed up our pace on changing our development model. so this has become the topic. as we say on climate change and develop a new energy, we must also do so based on the science. so the development in china is i will take clean energy to be our top priority. we have proposed the per capita or unit gdp lower 20% by 2020, so we will have a better system to regulate these energy

emissions. and some of us have already been implemented quite affect to believe. in the efficiency standard are being issued and they'll are to be pushed forward. and all these measures have been taken and for the last five years of our products by over 40%. so we hope will be able to reach our goal. in other words, the school is still very possible. because according to the chinese academy in china, 20 to 30% -- we still have 20% or 30% space for us to continue to expand in terms of energy supply.

it is also china's top priority to develop clean energy and will consider natural gas, hydropower should be our main items of development. we'll also try to develop policies to create an environment for this energy to be developed. we will go on the low to track dream. but of course in the next two years, coal will still be the main energy source. set up of carbon use of energy will become our goal. so here i would like to, as far as the direction we're going to concern how to go forward --

bilateral concerns i would like to let you know how we plan to do this. first would like to develop clean coal energy green mining and also tried to clean out the burning process and also the generation process and transfer process and also how do we conserve the energy in producing clean coal. next, on clean coal, which has the biggest potential for the u.s.-china cooperation, as far as clean coal is concerned, china has -- have a lot of pollutants that come out of the results of this so we can learn

about that from the united states. and in terms of the reprocessing process, we think that we each have our own advantage. and so, as far as the oxidizing method that was used by the u.s., we can also run from this. in terms of super critical mass, this kind of tech augean china can also learn the advanced technology and the united states. [speaking in chinese] [speaking in chinese]

[speaking in chinese] [translator inaudible] [translator inaudible] >> translator: we know chinese, one american company in a joint adventure and will put in 150 billion r&d and rad application in the area of tech knowledge is. in effect, american experts and

adding to these in the world, we energy in order to employ respects on the emissions so as to reverse the course of climate change. we also believe china in the president waits at the forefront in clean coal technology. i cannot totally agree with james, but i absolutely agree with his suggestion that the united states together with this government will strengthen cooperation with chinese conference of world agencies survey. china produced 45.6% of the

total coal production in the world and the united states is about 21% and we consume about 49%. the united states consume about 15% of carbon reduction in the world. these numbers are pronounced in 2009. now in 2010, chinese power and what is the united states, 46% of coal. so we can see the largest coal producers and can termers can cooperate. there's a huge corporation because we have tremendous capacity and rad and we have relatively sound foundations for collaboration and in addition to existential cooperatives found them we should expand human

resources development and support academia, including the chinese academy and my academy as a matter of fact it dissipated in strategic consultation projects. so i believe it would be further rate corp. insensitive manager on trade manner. it will become a key component in our relationship. there is no need to increase energy efficiency, but also in the leadership to accompany

climate change. if we can do that, then we can achieve the goals set by president hu jintao stated in his remarks to further bilateral relationship. thank you very much. [applause] [speaking in chinese] >> translator: thank you. we still have a little bit of time left and so you are welcome to raise questions or share your comments with your six panelists. [inaudible] >> the mic is not on.

>> -- in the u.s. is that right? with your second point that china needs to do more investment in the u.s. of the three points he made at the end of your speech. and if so, what kind of investment? >> know, the second point was the united states should be more open to chinese investment here. >> slightly different spin on that then. what kind of investments do you have in mind? >> well, i happen to be unusually in my case on the left-wing side of this than i would say anything they want more or less. certainly, investment would be an example of something which i would've thought would've been quite permissible.

>> anymore comments, questions? >> charles ettinger from brookings institution. any of the panelists i would like to address this question, when worse out talking about large utilization of coal by 2050 by believe some of the panelists were talking about. this seems to fly into the face with the intergovernmental panel on climate change is sane, which is by 2050 we have to be on the true check or a downward. in what figures you think correctly, i think i heard by 2050 china with still be on an upward tree, even though in percentage terms that might be down in your total primary energy usage. and i wonder if i heard you correctly. i wonder how you got till the

trajectory upwards with the conclusions of the appc. >> let me take at least a shot at that. first of all, what is going to matter as we move deeper into the 21st century is what elegies be used to burn the coal that we burn. china may well still be burning a great deal of: 2050. the question is how much of that coal will be burned in tech elegies that capture and sequestration of carbon dioxide. i think two things are going to happen going forward to tend to increase the fraction of coal that is used that ends up with the co2 captured and sequestered and tends to increase as well the contribution of other clean energy to elegies as opposed to uncontrolled burning of fossil fuels. the first of those that do this that i believe unfortunately the

symptoms of damage from climate change will continue to escalate, which will motivate countries to move rapidly in the direction of replacing the height admitting to elegies with automating technologies. the second thing i happened is the technological advances make it less expensive to make those transitions than we currently expect. so both of those forces will move in that direction of decreasing emissions from the energy sector over time and an even greater rate we probably currently anticipate. >> this is mainly from power at aubuchon university in china. my question is with regard to clean coal utilization also on the previous exchanges. cool, no matter how you use it in a clean way as an energy source it admits co2.

it just increases the energy utilizing in the process. now, in the u.s. and china, know about me we are the largest in coal use production, also we have the largest nuclear fleet and china as the country with the largest growing nuclear power market. and nuclear is the true no co2 emissions power source. utilizing coal -- by utilizing coal, with reduction in co2 would necessarily require some kind of than the limiting power source and nuclear would be a great way. and so cooperating between the two countries with technology developments in nuclear deployment would begin imports not in nuclear deployment would begin imports not in nuclear deployment would begin imports not in nuclear deployment would begin imports. >> two that i could only say i

agree. >> well, we have to wrap up by 11:30 for this session. it is exactly 11:30. so again i would like to thank the six panelists for their outstanding remarks in thank you for your participation. now we will get right into the networking session. thank you very much. [applause] [inaudible conversations] [inaudible conversations]

>> white house press secretary robert gibbs said president obama will talk about current rates with president hu jintao during the trip. this briefing is almost an hour. [inaudible conversations] >> sorry. let me get semi-organized here. mr. fowler. >> thanks, robert. on the executive order and the op-ed this morning, when you look at the timing of this come is the intent here at all to have been to the widespread concern voiced by the tea party, the business community and republicans about government intervention and government overreach?

>> no, ben and two others, this is something the administration and elements will be working on for quite some time. they think it sets out what the the president believes should be our very commonsense approach, which is to ensure the health, the safety, the security and protection of the american people as well understanding that we shouldn't do anything than unnecessarily limit their economic growth. that's been our approach. i think if you look at the history with conflict rules around your mileage standard, i think you make a pretty good case of the administration working with all the stakeholders to improve the situation to save us as is mentioned in the op-ed billions

of barrels of oil and the close of the lifetime of this rule and ensure again the health and safety in the welfare of the american people. >> but then with respect to what you just said that gutted a different way. in essence this is called to a government to make short the regulations are striking that balance. then why has that changed in two years clicks >> again, we have had an approach coming in to office that ensures that were doing makes common sense. this is what the president wanted to do to outline and put in writing our approach to ensure that we looked back and make sure that the efforts were undertaking that has been undertaken from the federal government are done in one way makes sense.

it protects again the health and safety of the american people and balances -- balances the import need for economic growth cookbook, i am sure is everything that happens in this town to have a political label to this, the president believes it defines a common sense approach. again, understand the op-ed were asking that there be a process we look back at what's been on the books and ensure that there has been an analysis as to the cost of the benefit given where we are. and the president believes that is necessary and appropriate. >> i wanted to ask you one quick thing on health care.

the storyline on the house's effort to repeal the health care law pretty much from the start included that it's not going to go anywhere in the senate and therefore not become law. i'm wondering from the white house perspective, is very negative to the very fact that they need to do this in impact the public? >> well, there has been on one hand, i do not -- by which are the police with many, including a think enunciated by those who are going to vote for repeal tomorrow, but this isn't a serious legislative effort. i think first and foremost a largely knowledge that. secondly, i mean, let's not misunderstand though what in essence the move says. it says let's put insurance companies back in charge of making health care decisions. and with that, the option to deny health care coverage, drop health care coverage, limit

health care coverage or cap health care coverage. let's understand the practical impacts of the congressional budget office said just a couple weeks ago as the impact to the tune -- blasi -- the several hundred billion dollars on our deficit in the short term and then over a 20 year period of time a significant increase in cost to the federal government. and i understand the practical impact on what this means for seniors. dramatically increases out-of-pocket costs. a likable to get the help they need or if it got through the affordable care at with their prescription drug costs falling and that donut hole, falling in that sort of gray area of not giving any help until they spend a certain amount of money. having to pay out of pocket now for preventive health care costs, a rate that is now guaranteed for free in the legislation. so i don't think it's going

anywhere. i do think it's an important symbol to the american people about who some people think should be in charge of making health care decisions. not families are patients are dark tours. the left that health insurance companies back in charge giving them the ability to drop come to deny, limit or cap health care coverage. and i will point as i'm sure many of you have read the article today come with the notion that almost 130 million americans have according to the department of health and human services a medical condition that would either trigger a loss of hope insurance coverage or an increase in the amount of money you paid to get that covered. that has real impact on the american people. >> a couple questions on the chinese government. president hu jintao said he was

releasing u.s. pressure to let their currency rise but tackling inflation. how confident is the administration that could positive movement on the currency issue? >> first and foremost, look, i think this is a relationship that has come as you heard secretary geithner and supervisor tom donnellan talk about last week but has certainly generated positive economic benefits for the american people to the team of $100 billion, soon to pass for the $100 billion in goods and services to china this year. at the same time, we believed more must be done in terms of their currency. obviously with inflation there are some impacts on the real value of the currency.

they have made -- they have taken some limited steps, despite the answers to revalue their currency. and i believe as you heard secretary geithner say friday, we believe more must be done. that is an opinion that is obnoxious by this country, but by many countries around the world. >> a lot of corporate deals are expected to come from the summit. large following is talked about as a possibility. >> i will direct you at thompson on friday. this is a little bit different than her trip to india in the sense that they said come and economic relationship that we have with the chinese is different on a scale with what

we do with india, which is why some of the commercial diplomacy around the india trip was so significant. book, obviously, we continue to believe that american companies produce the best products in the world and they have a demand from china. i have not been told of any big deals that will be rolled out tomorrow, but i'm certainly all years. >> some concern in the u.s. aircraft in, specifically the boeing border might be held up by political frictions if other areas are raised in the talk. is there any truth to this? >> look, i think it's important. the book, we have her relationship they said that deals with substantial benefit.

at the same time we have some direct and difficult challenges. some of those will be discussed. most of those will be discussed tomorrow. you would begin secretary geithner discussed the steps as you had for many months on currents of any to take place. while the chinese have to plate in that region of the world in dealing with countries like north korea as they have been helpful in dealing with sanctions at the u.n. on previous actions of north korea as well as sanctions around the islamic republic of iran. so they are whole host of issues that we anticipate the two leaders will discuss tomorrow before meeting with you. >> the administration and the president have talked quite a bit about pressing china on human rights and secretary clinton also said those going to be a major topic of conversation. has there been any success in getting them to move on any of

these issues? >> obviously that is a topic of some significant that the two leaders will talk about. president obama was put at a very forward leaning statement that part of the awarding of the nobel peace prize with liu xiaobo, that he should be free, but he certainly should be free to go to oslo and accept his prize. we will continue to have difficult conversations, jake, but necessary conversations that had to be had with china and will do that again tomorrow. >> no actual tangible evidence yet? >> again, this is a long road and whether we're dealing with

economic discussions, whether we're dealing with a those in the security realm or whether word dealing with those with human rights, i think this is an argument that we have and will continue to make to the chinese push them to do better. >> you said earlier the efforts of repeal just because you can't pass the senate and the president would veto it. >> well, just don't think it's going anywhere. and again, i'm quoting some of the many members -- the members of the house that said this is a serious thing. >> there's a new abc news washington post poll that also when the poll, the fact that the president and republicans are tied on handling health care for the first time ever has gone down nine-point, whether or not this repeal effort actually has any hope of becoming law, which is just not currently.

their public relations, they're talking about this issue has been good for their cause. >> except for this, i think you should be clear that this question does not measure repealed. and when i specifically and other public polls that we've seen repeatedly and recently about repeal, there is a significant number of people and some of them i presume are republicans that do not want to give up the very benefit of the outlined a minute ago, but want to see -- maybe they want to see something work done that's improved. but certainly not measured in a question where you pick a repeat. so i think if you break some of that question out and see that the notion that there is some vast white bread support for doing away with the affordable care act, raising the deficit, putting insurance companies

back, there's a whole host of things even republicans don't find suitable, tenable about the effort. >> i'm not talking about that specifically as much as i'm talking about the fact the republicans seem to be gaining ground with the public support and on the issue of health care. and the president is losing ground, not specifically repeal of health care, but moving forward on the health care issue. >> well i think the question doesn't measure the breadth of opinion certainly been around the health care issue. >> laissez coming to guide guys have any response to "baby doc" duvalier arriving in haiti? >> this is an important and crucial time for the people of haiti in the way -- [inaudible] >> haitian officials took him into custody, so if you want to a date here. >> thank you. i would mention any political leader or any formal political leaders should focus on a him or herself, but none making

progress towards a set of important elections and dedicate their time in their energy to the reconstruction of the country. thank you. >> on the human rights question, robert, does china have to mix it if it can't steps in addressing the issue before this relationship before the u.s. can progress and a significant way? >> well, dan, a can, if they give the word of talk about -- as you heard geithner and donilon talk about the series of baskets i think is tom called them or themes on issues that will be part of the discussion here tomorrow. human rights is certainly an important aspect to that. the economic relationship we have been in the security of that region of the world and of the entire world are important

in the role that the chinese must play as world that cares. so i'd give is -- i think again there's a whole host of issues that will be enterprise docket that the two leaders will work on. >> can we have more weight to the human rights issue quiet >> again, i think there are a whole host of important issues that will be discussed and we hope will be ultimately address. >> did you get word from a typed about the looking back -- can you explain a little bit or about how this process will work and the timetable -- a >> we have no idea what the timetable might be, but again, this is simply for the relevant agencies to go back and ensure that the regulations that are currently on their books, again, goes through a process